Some paragraphs from a nice review article by that much and unjustly
maligned man Rowan Williams:
Classical theology maintains that God is indeed different from the
universe. To say this is to suggest a radical difference between one
agent and another in the world. God is not an object or agent over
against the world; God is the eternal activity of unconstrained love, an
activity that activates all that is around God is more intimate to the
world than we can imagine, as the source of activity or energy itself;
and God is more different than we can imagine, beyond category and kind
and definition.
Thus God is never competing for space with agencies
in the universe. When God acts, this does not mean that a hole is torn in
the universe by an intervention from outside, but more that the
immeasurably diverse relations between God's act and created acts and
processes may be more or less transparent to the presence of the
unconstrained love that sustains them all.
The doctrine of the incarnation does not claim that the 'theistic'
God (i.e. a divine individual living outside the universe) turns
himself into a member of the human race, but that this human
identity, Jesus of Nazareth, is at every moment, from conception
onwards, related in such a way to God the Word (God's eternal
self-bestowing and self-reflecting) that his life is unreservedly and
uniquely a medium for the unconstrained love that made all things to
be at work in the world to remake all things. Jesus embodies God the
Word or God the Son as totally as (more totally than) the musician in
performance embodies the work performed.